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WPI inflation jumps to 30-month high of 5.25% in Jan 2017

MoM Team / Mumbai, Feb 14, 2017 12:37 PM IST

The Wholesale Price Index (WPI)-based inflation accelerated further to 30-month high of 5.3 percent in January 2017 from 3.4 percent in December 2016. An increase in WPI inflation was mainly driven by higher inflation for fuel and power group, while inflation for primary articles and manufactured products group also moved up in January 2017.

Inflation of primary articles rose to 1.3 percent in January 2017 from 0.3 percent in December 2016. The inflation for manufactured products moved up to 4.0 percent in January 2017. The inflation for fuel items zoomed to 18.1 percent in January 2017 from 8.7 percent in December 2016.

Inflation of food items (food articles and food products) was flat at 2.8 percent in January 2017 from December 2016 level. Meanwhile, inflation of non-food items (all commodities excluding food items) moved up to 6.4 percent in January 2017 from 3.7 percent in December 2016.

Core inflation (manufactured products excluding foods products) accelerated to 2.7 percent in January 2017 from 2.1 percent in December 2016.

The contribution of primary articles to the overall inflation, at 5.25 percent, was 37 basis points (bps) in January 2017 compared with 08 bps in December 2016. The contribution of manufactured products was 226 bps compared with 206 bps, while that of fuel product group was 263 bps against 129 bps in December 2016.

The contribution of food items (food articles and food products) to inflation fell to 89 bps in 5.25 percent in January 2017 compared with 91 bps to 3.43 percent in December 2016. Meanwhile, the contribution of non-food items (all commodities excluding food items) was 436 bps in January 2017 compared with 250 bps in December 2016.

As per the revised data, the inflation figure for November 2016 was revised up to 3.4 percent compared with 3.2 percent reported provisionally.